Reply 4 Chapter 4 What Would You Do? BUS 166 MOAO

Chapter 4 What Would You Do?

Assume that you manage a 300-room hotel. Your local university football team is playing a home game on Saturday, and demand for rooms far exceeds supply. Your no-show rate on reservations for the past three football games has been 8, 12, and 9 percent respectively. Currently you have 100 nonreserved rooms. Please answer the following questions and comment on two other students’ posts.

1. How many room reservation contracts are you willing to accept?
2. Should you require that all reservations be confirmed?
3. What factors will you consider as you make your decision? What strategies will you employ to reduce no-shows? 1-
  1. In order to compensate for no-shows that we assume will take place, I believe that accepting as many room reservation contracts as possible (within reason), as long as it equates for no-show patterns in the past, is not a bad idea. If most of the same rates remain consistent and we can assume that an average of about 10% of rooms become no-shows as a result, it might be acceptable to overbook around the same percentage. Its probably likely that the same rates will be applicable, and it may be safe to make room for a few just in case the turnout is higher this time around and no guests loose based just on probability.2. I think that all reservations should be confirmed, especially since there is a large number of rooms being requested. It ensures that the hotel does not lose-out last minute and can prepare adequately for the guests it is expecting. Some ways to ensure confirmation might include deposit fees or allowing guests with less time to decide whether they’d like to cancel or not, for instance, rather than having a week to decide, they have a few days or so and to keep ( as long as it is made clear to the guests) no show fees in place. 3. Its definitely important to consider past rates of guests, party sizes, the weather forecast, duration of stay, or any guests that have stayed at the hotel in prior times. Strategies to combat no-shows should be consistent of deposit fees, email reminders and authentication, and a shortened cancellation window, which allows for the hotel more time to book other guests during this time of high-demand.
  2-
  
  If I manage a 300-room hotel and the local university football team is playing, I would be careful about how many reservations I accept. Since I have 100 nonreserved rooms and a no-show rate of about 812% from past games, I could safely overbook a few rooms, maybe 1012 extra reservations, to make up for expected no-shows.Yes, I would require all reservations to be confirmed. Confirmations help make sure guests really plan to show up and reduce last-minute surprises.Factors I would consider include past no-show rates, the number of rooms still available, and whether its a special event that might cause more people to show up. To reduce no-shows, I would send confirmation emails or text messages to guests, require a deposit or credit card hold for reservations, call guests with large or multiple-room bookings to confirm, and clearly post the cancellation and no-show policies.These steps help protect the hotel from losing revenue and make sure guests know the rules.
  3-1. How many room reservation contracts are you willing to accept?
  In this situation, I would base my decision on the past no-show rates to determine how many reservations to accept. The previous no-show rates were 8%, 12%, and 9%, which average to about 9.66%. Since I have 100 nonreserved rooms, I can expect that around 910% of guests may not show up. To make sure I maximize occupancy, I would slightly overbook. Based on this average, I would accept about 110 to 111 reservation contracts. This allows the hotel to still be full even if some guests do not arrive.2. Should you require that all reservations be confirmed?
  Yes, I would require that all reservations be confirmed. Because this is a high-demand event with a university football game, it is important to make sure that guests are serious about their booking. Requiring a credit card or deposit helps reduce no-shows and protects the hotels revenue. It also creates a clear agreement between the guest and the hotel.3. What factors will you consider when making your decision?
  There are several factors I would consider when making my decision. First, I would look at historical no-show rates from similar events. I would also consider the high demand for rooms, competitor pricing, and the risk of overbooking too much. Guest satisfaction is very important, so I would not want to overbook to the point where I have to walk too many guests. I would also think about the hotels legal responsibilities if overbooking occurs. To reduce no-shows, I would use a few strategies. I would require a credit card guarantee or deposit for all reservations. I could also offer prepaid or non-refundable rates to encourage commitment. Sending reminder emails or text messages before arrival would help guests remember their reservation. I would also make it easy for guests to cancel before a certain deadline. These strategies help reduce empty rooms and improve overall hotel performance.
  - 1. Given that my hotel has 100 non-reserved rooms and previous no-show rates for football games of 8%, 12%, and 9%, the average no-show percentage is around 10%. To account for this, I’d be happy to accept about 110 reservations. This minor overbooking compensates for projected no-shows, allowing the hotel to optimize occupancy while not turning away visitors who come on time. It is critical to depend on past data when making these estimations, but I would also watch the trend of bookings leading up to the event and adapt as required.2. I would require that all reservations be verified before the arrival date. Confirmation ensures that visitors are still planning to stay, decreases the possibility of unexpected no-shows, and allows you to collect deposits or get credit card guarantees. This procedure protects the hotel financially and helps manage guest expectations, particularly during high-demand events such as a university football game.3.When making these judgments, I would examine previous no-show tendencies, the event’s popularity, customer booking habits, and external elements such as weather, which may effect arrivals. Strategies for reducing no-shows include demanding confirmations via email or phone a few days before the stay, collecting deposits, giving nonrefundable advance-purchase pricing for high-demand nights, and modestly overbooking based on past trends. By combining careful planning with these preventative steps, the hotel may increase income while reducing the danger of empty rooms and visitor unhappiness.Expand discussion thread from Jorg

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Reply 4 Chapter 4 What Would You Do? BUS 166 MOAO

Chapter 4 What Would You Do?

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